St. Paul daily globe., 1887-04-28
he DIDN'T PROVE TT.
Il. II. Porter, the Ex-Railroad President,
Gives His Testimony in the Car
Company Gases,
But signally Fails to Produce His Prom
ised Evidence of Corrupt Man
agenlept.
His Memory Proves Very Poor, the
Result Being D. Bundle of De-
mails and Admissions.
Senator Sabin Pays His Respects to
the Millionaire Railroader in
Vigorous English.

The hearing of the celebrated car com.
pany cases was resumed in the district
court at Saltwater yesterday morning.
The presence in the city OF so many promi-
nent attorneys from abroad. and especially
of the celebrated eXrailr0ad president. Ill.
III. Porter, who, it was understood, would
testify, lent additional interest to the pro-
ceedings. For three years Mr. Porter has
claimed that Mr.. Sabin's management OF
the affairs Of Seymour, Sabin & Co., and of
the car company. would be shown TO be
corrupt and dishonest, and the public,
especially at Saltwater, where the business
was located, has awaited with great deal
OF expectancy the time when this very i'm
portant witness should tell the story of Mr..
Sabin's wrongdoing 10 the court. TO say
that they were disappointed in the matter.
and that no such startling developments
were made by the witness is putting it al
| together too mild. The examination of Mr..
Porter was conducted by his own counsel,
j. Nj. Flower, of Chicago, and Fayette
Marsh, OF Saltwater, counsel for Seymour,
Sabin Il Co. Mr.. Porter was on the stand
most OF the day, and testified briefly as fol-
lows:
| MIR. Sabiu came to HIM some time prior to
the establishment of the Northwestern Car and
Manufacturing company and desired him to
| invest in that concern, which he finally con-
sented to DO: not that he expected any divi-
| dend or profit from it. but because he wanted
| 10 help Sabin, who was considerably involved.
He agreed to put in 100000 if a company
| were formed with So, 000.G00 Of capital, which
should purchase
THE PLANT AND ASSETS III
of the old Seymour, Sabin & Co. concern
which were afterward appraised by a commit
tee composed OF Hon. c. ID. Gilfillan, Thomas
| Lowry and F. B. Clark at 81, 391, 900, all the
stock of which should be taken, and that $780,
| O0O worth of the preferred stock OF Seymour
SaDln d Co. should be guaranteed by an
| equal amount of car company stock held in
| reserve for that purpose. 1t was the further
| understanding that no outside schemes or
| lines OF business should be engaged in by the
| new company. Mr. Porter also stated that be
was led to believe that all of the So, 900, 600
| OF car company stock had been sold
! when he took his. He did not know that any
| OF the bills receivable Farmers notes. had
| been hypothecated by Seymour, Sabin g. CO.
| for their Indebtedness, which had been pur-
| chased by the car company. He did not know
until after the failure that these notes had
| not been turned oyer to the car company, as
| agreed upon IN the purchase. He heard after
| the Ialillre that the car company had en-
dorsed for Seymour. Sabin & Co. On cross eX-
| animation he denied ever having given power
| OF attorney to any one to represent him i'll
| the car company. Such power of attorney in
| favor OF Hon. G. d. Gillian, of st. Paul, to
| which he admitted his signature, was how
| ever, offered in evidence by Mr.. Marsh. He
| expected that Mr.. Sabin would look after his
interests. He knew very little about the state
| OF the car company's plant or of its practical
| workings until after he had invested He
admitted receiving 100000 of preferred and
company, for which he paid $780,
| 900 cash. Mr.. Porter was questioned
| regarding his knowledge of the construction
| of the saltwater Transfer company road, and
finally admitted his desire to have it built
| When asked about q threat that he would
| take up his track leading to this city If the
Milwaukee road was allowed to usurp the
| lake front to his exclusion, he admitted he
might have said so
| UNDER PASSION,
| but did not remember it. He did not expect
| dividends, but went into the car company to
assist Mr.. Sabin. He admitted arranging a
| scheme whereby farmers notes were placed
in the hands of trustee and certificates
issued on them, which were used to raise
money, $4,000 of which was furnished by
the First National bank, of Chicago of which
he was president The memory of the witness
was extremely BAD, and he was confronted
with various letters and telegrams which con-
tanned matters which he had previously
| denied. He testified that Mr.. Sabin had
aided him in number Of railroad
matters in which he was then
interested and that he was desirous of having
the Saltwater Transfer company established
and their tracks built connecting the Omaha
and Duluth roads in this city and also to
Lakeland, where the saw mill of c. N. Nelson
was located, as it relieved them from any
chance OF fire risk in this city. He had Il
number Of personal conversations with MIR.
Sabin upon matters in which his roads were
interested, and said that Mr.. Sabin had aided
J., 104.,, H.
Mr.. Sabin to aid him in placing some of the
Car cOmpany'S stock and had written to sew
eral parties to try to get them to purchase,
but had never succeeded in selling any of it.
Mr.. Porter. in leaving the witness stand,
gave the impression that he had been i'll
duced to invest money in an institution that
had not had prosperous career, and that
he was intensely angry at the result and
particularly bitter towards Mr.. Sabin in
consequence. The application for referee
or a board, as might be decided upon, to in
spect the affairs of the car company re-
ceiver and finally pass upon them, was re-
| newed. The court remarked that it was a
matter of
JUSTICE TO THE RECEIVER
that this should be done and the matter
finally settled, and that if those interested
| would suggest to the court their desires in
this matter and could agree, he would ap-
prove of their choice and make the appoint
ment in accordance with their wishes The
attorneys interested Withdrew to one OF the
jury rooms and, returning from their de-
| liberationS, announced that upon the part
of II. G. Stone was desired. and
| on tine part of Seymour, Sabin & Co., j. C.
O'Gorman, and that for the third, who
should settle all disputes between the two,
| Col. W. b. Bend. or, in case he could not
| act, Capt. G. S. Bunker. both of ST. Paul,
should be appointed. Objection was made
| by Mr.. Clapp to the appointment of Messrs.
| Stone and O'Gorman, on the ground of
their having already formed a biased epin-
ion. but it was on the other hand claimed
| that they were the two men of all others
| who were familiar with the intricate affairs
| of the two concerns. and that any dispute
arising could be settled by the third referee.
| The court took the matter under advise
| ment until this morning. j. n. Searles,
counsel for d. M. Sabin, gave notice that he
| would move, upon the conclusion of the in
| veStgation, that all property of everv kind
| now in the possession of the receiver, be-
| longing to the Northwestern Manufacturing
| and Car company, be sold to the highest
| bidder. Mr.. Keen was upon the stand when
court adjourned.
SABIN iNTERvI WE'D.
N